SocialFi refers to the combination of social networks and blockchain finance. SocialFi is Social Finance.

The SocialFi space allows users to earn income from creating content, participating in DAO governance, minting NFTs, communicating with other users, entertainment, and gaming.

As the SocialFi space gains more momentum, more and more social media giants are expanding their exploration of integrating NFT into their platform. Facebook/Meta, Instagram, Twitter, Reddit, YouTube are the social platforms that are actively integrating, or exploring, the NFT space.

Currently, NFTs are not manufactured, or traded, on any social media platform. The success of an NFT project depends on how well the creator markets their work on social media.

Most NFT owners believe that displaying the NFTs they have purchased on social media adds value to their holdings. In this way, cryptocurrency-friendly social media companies have an opportunity to reach and retain new NFT-oriented customers.

The data is still the business, obtained from the exhibitionism of many people. Thus, the most influential social media companies in the NFT space can influence the development of Web 3.0, as this iteration of the web revolves around the concept of storing user data on blockchains.

When it comes to content creation, the creator tends to do most of the work, while platforms just provide a place where they can showcase their work, and of course, get the big data for their own benefit.

SocialFi will allow creators to monetize their social media reach with relative ease, ensuring that those who do the work are the ones who see most of the profits.

Think of web 2.0 and a company like Facebook. Facebook is free to use. But there are no free lunches. Data is the product, and Facebook (now Meta) has benefited greatly from our personal information. Mark Zuckerberg is still worth nearly $70 billion , even after the recent stock plunge. Users have done most of the work, creating the content on Facebook with their posts.

The central point of interest is identity and its relationship with tastes.

Will SocialFi Be Decentralized Identity?

I don’t think so, at least not in the giants of social networks, since information is their business.

Unlike the Web 2.0 social networks we know, SocialFi projects will provide higher levels of identity for users’ personal data, fairly distribute advertising revenue, and deliver a more valuable user experience.

Avatars have long been used in the social media space to represent a user’s identity online. In SocialFi spaces, an NFT avatar will be able to represent the identity of the owner both in the crypto world and in the futuristic metaverse.

Although still in its early stages, SocialFi can have a significant impact on the cryptocurrency, blockchain, and NFT space, and how we operate socially around the world.

I believe, my dear reader, that SocialFi will become an integral part of the Metaverse ecosystem in the near future.

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You can read my previous article, to understand the framework of importance: Metaverse is Centralized Technocracy

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